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Alcatel to launch telecom satellites ECC okays tariff changes to avoid

duty anomalies

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet Tuesday approved changes in the tariff to remove anomalies in the duty structure and provide protection to the indigenous industry. Besides, it allowed launching of telecommunication and broadcast satellites.

The changes in tariff includes reduction of customs duty from 10 percent to 5 percent on VCM, removal of 5 percent CED on import of sack kraft paper, removal of 5 percent CED on local manufacturing of paper sack, reduction of CED from 15 percent to 5 percent on polyester chips and from 10 percent to 5 percent on polyester filament yarn.

It was decided for the UFMC that if the C&F prices does not exceed $800 per tonne then protective duty will be applicable in a graduated manner to maintain landed cost at not less than Rs 61,000 per tonne. It was also decided to remove 5 percent CED on BOPP film if used in the film of a capacitor grade.

The ECC, which was chaired by the Finance Minister Shaukat Aziz, allowed the Ministry of Communication to sign implementation agreement with Alcatel SpaceCom for the launching of telecommunication and broadcast satellites into the 'geostationary orbit'. The entire expenditure on the project will be arranged by the foreign investor.

ESSENTIALS PRICES

The ECC, reviewing the prices and availability of essential items in the country, noted that there was general stability in the prices of kitchen items, and the prices of 18 out of 21 kitchen items either declined or remained stable. The index of kitchen items decreased on average by 2.59 percent, since July 3, 1999.

The ECC is also monitoring the 18 selected items which are generally consumed during Ramazan. Out of the 18 items, the prices of 11 items (such as various fruit, potato and onion) have registered a decline during the week ended on December 30, 1999 as against December 21, 1999. The prices of five items (such as Dal) remained unchanged while the prices of two items (such as Baisan and yellow Dal) registered minor increase.

The reasons for the decline in the prices of 11 items include the better supply situation owing to the seasonal factors and better management and vigilance of the price Monitoring Committee at district level.

POL, WHEAT STOCK POSITION

The Committee was informed that stock position of POL, wheat and fertilizer was quite satisfactory in the country.

The meeting decided that resident business ventures in the service sector engaged in providing services at ports by way of setting up and operating container or oil terminals as well as those infrastructure and service sector projects which are covered by the Investment Policy 1997 would be exempted from presumptive tax and be taxed on net income basis.

POTATO CROP

The ECC was presented a report on the potato crop and was informed that the crop for the last two years had been excellent and the estimates for the next crop also indicate a reasonable surplus for exports.

It was informed that new markets are being explored for the export of surplus potato. The Committee, therefore, allowed 25 percent concession on freight for the export of 100,000 tonnes potatoes during the period January-September 2000.

The meeting was attended by ministers for commerce, food and agriculture, environment, local government, rural development, and labour, manpower and overseas Pakistais and Chairman, Privatisation Commission, Secretary-General, Finance, Federal Secretaries and other senior officials. APP